Golden Leaf Holdings Ltd. (OTCQB:GLDFF) has issued a Letter of Intent to BlackShire Capital Corp to unveil the first franchise model in the Cannabis sector – Chalice Farms.
Golden Leaf intends to capitalize on the retail business opportunities in Cannabis space in Canada, the US and global markets under the Chalice Farms brand. Blackshire and Golden Leaf are also engaged in final talks to form a joint management company that will act as a franchise to manage and own the retail franchises under the Chalice brand.
According to the terms of the deal, Blackshire will provide $10 million for the working capital of the joint management company in Canada. The company will also provide $15 million towards the working capital of the joint management company in the US.
Blackshire will hold 80% stake in the new joint management company whereas Golden Leaf holds 20% stake. Additional funds if required for the company will be provided by both the firms in the ration of ownership.
Chief Executive Officer of Golden Leaf, Mr. William Simpson said the LOI with Blackshire validates the franchise initiative and allows both the companies to proceed with management partnership to take the deal forward. He further said franchising under the Chalice Farms will help the companies to utilize the growth opportunities in new territories like Canada, and the US subject to the approvals. This is apart from the existing operations in Portland, Oregan.
Golden Leaf is well positioned to expand the retail based franchise model and build a long term and sustainable business growth to improve the shareholder value.
Mr. Kevin Reed, Chief Executive Officer and Chairman of Blackshire said the company has invested large sums in the cannabis sector for several years. Now, Blackshire has found a progressive and proven partner in Chalice Farms and Golden Leaf to provide a premium experience to the customers. The company is looking forward to moving this partnership through definitive agreements to capitalize on the business opportunities in the US and Canada.
The new alliance will help to operate the cost effective business and provide rich dividends to the stake holders.